Energy Efficiency Information and Valuation Practices in Rental Housing

Andrea Chegut, Piet Eichholtz (), Rogier Holtermans and Juan Palacios
Additional contact information
Andrea Chegut: Massachusetts Institute of Technology
Piet Eichholtz: Maastricht University
Rogier Holtermans: University of Guelph
Juan Palacios: Maastricht University

The Journal of Real Estate Finance and Economics, 2020, vol. 60, issue 1, No 11, 204 pages

Abstract: Abstract The consensus in the academic literature is that energy efficiency is associated with transaction value premiums, but it is not clear to what extent property appraisers take account of this. We decompose external appraisals of rental housing by international valuation firms in England and the Netherlands in two waves, keeping the samples of valued homes constant between these years. We find a notable change in the behavior of external property appraisers. In England, energy performance does not impact assessed values in 2012, while estimation results for 2015 show a significant discount in assessed values for D-, E- and F- relative to C-labeled dwellings. For the Netherlands, we do not observe a significant relationship between energy efficiency and assessed values in 2010, but in 2015 we find that more energy efficiency leads to higher external valuations.

Keywords: Affordable housing; Real estate valuation; Energy efficiency; Energy performance certificates (search for similar items in EconPapers)
JEL-codes: Q41 Q5 R31 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (10)

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DOI: 10.1007/s11146-019-09720-0

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